Marvin Nathaniel Smith JR is a credit coach who is offering guidance on fixing a credit score. He has even penned down the book, The Psychology of Credit, for which he has become the best-selling Amazon author.
He runs his company titled, DKR Group Funding, where he teaches about improving the credit score by understanding a credit report.
The credit coach believes people unknowingly make some blunders that ruin their credit score. Marvin Nathaniel Smith JR has enlisted 8 ways a person may be hurting his credit score.
Over Utilization of Credit Cards
Many people overutilize their credit cards which is a big mistake in running their credit score. Marvin Nathaniel Smith JR says a person must keep his credit balances below 30% to improve his credit score.
Poor Credit History
Closing old credit cards and opening new ones reduce the credit history. And it lowers the credit score of a person.
Not Reviewing Credit Reports Every Year
People who don’t check their credit reports often fall a victim to identity theft. As a result, their credit score decreases.
Wrong Understanding of Introductory Interest Rates
Many people don’t understand the introductory interest rates while opening a new credit card. And they end up choosing interest rates that are not worthy for them.
Making Minimum Payments
Making monthly minimum payments means a person is doing himself a favor. It also impacts the credit score.
Not Making Timely Payments
Not making timely payments also makes a person an unreliable borrower. Marvin Nathaniel Smith JR says it decreases the credit score.
Not Checking Monthly Statements
Many people don’t check their monthly payments and they don’t have any idea of the due balance. Moreover, it also makes them fall a victim to credit fraud.
Going for Cash Advances
Opting for cash advances also decreases the credit score. Usually, creditors charge a higher APR for cash advances and some additional transaction fees.